RENT OR BUY?
Below is a table providing some comparative numbers around annual costs associated when purchasing a caravan and renting one. This table should be used as a guide only however is typically representative of costs at hand. The results indicate that hiring a caravan compared to buying one will provision selection of a van to suit your changing lifestyle whilst not having a large amount of money tied up in a highly depreciable asset that may not be used as much as you would like to.
$55,000 CARAVAN comparison
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BUY
Storage Insurance Service & Maintenance Registration Interest on loan at 6% Depreciation @ 7.5% TOTAL PER ANNUM |
$ 1,325.00 $ 800.00 $ 600.00 $ 200.00 $ 3,300.00 $ 4,125.00 $10,350.00 |
HIRE*
2 week holiday at Christmas 4 week holiday - non peak Long weekend away TOTAL PER ANNUM |
$2,000.00 $3,470.00 $ 535.00 $6,005.00 |
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In 5 years, you have paid $51,750 in costs and still have a $55,000 loan on a 5 year old caravan that may not suit your lifestyle.
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After 5 years of hire you’ve saved yourself thousands, you will have no loan and are still hiring a brand new caravan to suit your current lifestyle and you have an extra $21,725 in your pocket.
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*Pricing represented in the above table is based on a brand new 2018 Jayco Expanda Poptop 17-56-2 Outback accommodating a family complete with ensuite, air conditioning, TV/DVD, Stereo, full-size fridge including a complete fit-out. Click here to view ex-hire vans for sale.
